AppLovin Corporation is committed to creating a software-based platform for mobile application developers to improve the marketing and monetization of their applications globally. The company is headquartered in Palo Alto, California.
| Revenue (TTM) | $6.83B |
| Gross Profit (TTM) | $6.04B |
| EBITDA | $5.41B |
| Operating Margin | 77.70% |
| Return on Equity | 203.70% |
| Return on Assets | 46.50% |
| Revenue/Share (TTM) | $20.24 |
| Book Value | $9.43 |
| Price-to-Book | 33.37 |
| Price-to-Sales (TTM) | 15.35 |
| EV/Revenue | 15.53 |
| EV/EBITDA | 19.10 |
| Quarterly Earnings Growth (YoY) | 57.00% |
| Quarterly Revenue Growth (YoY) | 52.80% |
| Shares Outstanding | $305.73M |
| Float | $254.41M |
| % Insiders | 14.31% |
| % Institutions | 76.12% |
Volatility is currently expanding
Shares of The Trade Desk (NASDAQ:TTD | TTD Price Prediction) are falling again on Monday afternoon, extending what has already been one of the worst runs in large-cap software this year.
The Rule of 40 combines revenue growth and operating margin to assess a software company. This software company produces a triple-digit score, and it could continue to do so for years to come.
At $310.95, AppLovin (NASDAQ:APP | APP Price Prediction) looks mispriced relative to fundamentals.
APP expects third-quarter revenue growth to reaccelerate sequentially while maintaining an 83% margin despite continued investment in AI computing capacity.
APP pairs rapid revenue growth and high margins with a forward earnings discount, while e-commerce execution and limited visibility remain key risks.
AppLovin (NASDAQ:APP | APP Price Prediction) trades at $318.68, while Wall Street's consensus price target sits all the way up at $559.00.
AppLovin Corp (NASDAQ:APP) shares fell 5% to $321 after Bank of America downgraded the stock to Neutral, citing greater uncertainty around the company's ability to sustain its long-term 30% revenue growth trajectory. Bank of America said AppLovin's second quarter results raised questions about a previously assumed source of baseline sequential growth.
BofA Securities analyst Omar Dessouky downgraded the stock to Neutral from Buy.
AppLovin is facing a moment of reckoning as execution risks rise quickly and growth hits a speed bump, despite having endured a sharp valuation reset. APP's transition into the consumer/e-commerce vertical faces greater challenges than anticipated, with AI model sophistication and data quality being key hurdles. Core mobile gaming remains resilient, but market share has likely peaked, and revenue growth is expected to decelerate through FY2028.
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